The CFPB has some fundamental structural flaws, a West Virginia banker told the House Financial Services Committee yesterday. Robert Tissue, CFO of Summit Financial Group, Moorefield, WV, testified that the CFPB’s structure separates consumer protection from safety and soundness supervision and lacks accountability for its “quasi-legislative” powers.
Testifying on behalf of the West Virginia Bankers Association, Tissue recommended that Congress replace the CFPB director with a board that has a background in prudential supervision, promote accountability by requiring the CFPB to be funded by congressional appropriations and ensure that nonbanks are regulated at least as rigorously as banks.
“Unlike nonbanks, the banking industry already has a compliance culture and financial wherewithal to assure compliance with consumer regulations,” Tissue said. “Thus, there needs to be great transparency regarding the Bureau’s funding to assure that the focus is on closing the gaps on nonbanks, including a break-out of Bureau expenditures attributable to bank versus nonbank regulation and supervision.”
Read the testimony.